Economics

Gojek and Grab are two super app companies in southeast Asia. Grab is a unicorn company from Singapore, while gojek is a unicorn company from Indonesia. Both companies have a significant market in Indonesia’s ride-sharing industry. Lately, there is an issue that both companies will do merger decision in the future. If both companies refute to do merger, thus both of them will need to spend a significant amount of cost to maintain the market and attract a new customer. On the other hand, if they decide to do merger, therefore, they will gain big market expansion and advance technology and service adjustment. On the other hand, investors for both companies each have aggressive requirements to run companies. Let the game hypothesis are such below: – If grab and gojek refuse to merge, data says that Grab`s market in 2019 has reached 64%, while Gojek only has 35.5% – If both companies decide to merge, thus both integrated companies are projected to have 98% of market share – If one company refuse to do merger, the one who refuses to merge then will lose 3% of the market share, and one who agrees will increase market share by 1% According to the above information, please answer:
a.) Create pay-off matrix for the ride-sharing industry
b.)Does each player have a dominant strategy? Explain
c.)Is there any Nash Equilibrium in this game? Explain

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